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What is the company's WACC if it has the following capital structures and 40% tax rate? Market Value Required rate of return Bond $60,000,000 4%
What is the company's WACC if it has the following capital structures and 40% tax rate?
| Market Value | Required rate of return | |
| Bond | $60,000,000 | 4% |
| Preferred Stock | $60,000,000 | 6% |
| Common Stock | $120,000,000 | 10% |
A: 7.1 %
B: 6.67%
C: 9.4%
D: 7.5%
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